April Trade #4

Trade #3 was bad, thought the market was going to go down due to over exuberance. Over exuberance continued. It's ok.

TRADE #4 - nice, clean, simple

Bernanke had his speech today mid-day. He hinted of increased inflation and scaled back his big "recovery" platform. He totally side-stepped the currency issue and said that was basically not in his job description, rather a matter for the U.S. Treasury.

B.S.

Precious metals markets ROARED in response with the 1 hour of trading time remaining. Gold soared $20 bucks instantly, silver roared up a few bucks and is still going after hours right now.

So in two hours, before the speech, I went in at $1.46 x 100 = $146 + $5 comission = $151 invested

I sold my position for $2.13 x 100 = $213 + $5 commission = $218

Net Gain after commissions was = $57

~ ~ ~ ~

Slowly rebuilding my portfolio...

Sort of in a cash crunch, might pull out some bucks. I need more funds to straddle and play both sides. Shooting with such limited ammo is tricky. Forces you to be too conservative cause you can't lose any more principal. Not that it's a bad thing, but my best strategy lies in the non-directional straddle.

Mhm.. straddles..

Fortunately there is a Ferrari called the Challenge Stradle, the pimped out version of the 360 Modena =D

So pimped out that the car is VEGAN. to hell with leather interiors, cloth is lighter. =)

Wow, silver hella did not go down. It went up. WAY up.

That put option went to hell. Sold it for at a loss. Eh, sometimes it's madness to swim against the current.
While a $40-50 loss isn't the coolest thing in the world, busting out a calculator to figure out how much the rest of your real silver holdings is suddenly worth can really help improve your mood.

April Trade #2 - SILVER!

Good morning ladies and gents,
Woke up at noon to find silver busting out another all-time high at $41.88 from a $1.22 gain just today due to inflation woes and poor job outlooks.
When all goes to hell, commodities go through the roof yo.

Even though it's an all-time high since 1980, this price is not sustainable after today ends. The price will come down I strongly believe and correct to the 41.40 level at least, if not to the support/resistences of $40.50 as tested from the prior days.

I could also be reading this trend wrong since it "looks" still bullish with higher highs and higher lows.
Yet, knowing the fickle small silver market, I think it'll come down. If I'm wrong, stop limits in place and we're all good.

In summary:

SLV put option (bearish) / May 11 expiration / $42.00 strike

1 contract, paid $258.00 + $5.00 commission 

Well re-post when I sell. w00t w00t

Wish I had more dough to straddle this trade. I prefers non-directional. 

Silver in April

Daily P/L = 45.52% = $88.00
MTD Value Change = 114.22% = $149.99
YTD = -58.6% = $398.24

Had some serious losses trading silver and other things in the wrong direction early in the year. Wasn't in the zone, didn't look at my indicators, watch my numbers.

HOWEVER, debt ceiling crisis has been GREAT for precious metals right now. Been paying attention to the news like a hawk, watching the silver price, caught a great big wave from April 37.00 call options. Spot went to $40.75/ounce the moment I sold. Beautiful trade.

Trade Details:

April 4th - Bought 1 call option (bullish) on the Silver exchange traded fund for $1.24 x 1 contract of 100 options = $124 + $5 brokerage commission = $129

April 8th - Sold 1 call option (bullish) on the Silver ETF for $2.82 x 1 contract of 100 options minus commission charge = $282 - $5 = $277

Net gain? =$158 = in one week

Wow Warren, were you lucky or risking much? 

   Not really, check it, my total investment was $129. I could only lose that much, max, therefore my potential risk and downside was set in stone. Hence, playing options on silver put in a limited risk, unlimited gain situation, which is AWESOME and always the situation you want to be in. 

Then, again, I wouldn't ride a loser all the way from $129 to zero dollars. I'm willing to lose say, 20% in case I placed my positions in the wrong direction. 

All in all, I love silver. I know how it moves. I followed currents events to the T, and I have full faith Obama and his banking/defense homeboys will spend money like no tomorrow, hence our need for more and more toilet paper. Precious metals will rise against this currency fraud and debasement.